Last year, I finally decided to embrace a cash envelope system to help control my budget.  (something that has gained much popularity thanks to Dave Ramsay’s Total Money Makeover).  While browsing pinterest one day, I came across some fun handmade cash envelopes and was inspired.  (I can no longer find said pin)  So, before the start of the year, I made my own.  (My mom helped a lot…she is a much more skilled at sewing than I am)

I had a lot of fun making these and enjoy using them.

First, I chose the fabrics I wanted for the envelopes and for the purse/clutch/large envelope to hold them all.  All of these fabrics came out of my moms sewing closet and are fun because I had clothing made out of many of these as a kid.

After figuring the right size for the small envelopes, I got to marking and cutting.

Then, to add a little stiffness to them, we used some Pellon Wonder Under to line the fabric.

Finally, the fabric was sewn into envelope form (simply folded over and sewn on both short sides).

A small velcro piece was added to the inside to help protect the precious cash!

The large envelope/clutch was made last to ensure it was cut to the proper size to fit all the envelopes.  It was lined with with another fabric and a snap enclosure was attached.

I have not been using any sort of labeling system for my envelopes, but have seen that many do so with velcro fabric labels or cardstock insert style labels.  I simply assigned different fabrics to different spending categories and have come to know which is which. 🙂
My main categories are groceries, dining, transportation, entertainment, hobbies, personal care, home & office, gifts and clothing.

Once the budgeted cash is gone for the month, that’s it…it’s gone!  Currently, I roll over any left over cash to start off the next months normal budget.  Eventually, I plan to put the leftovers into savings each month.  I do, however, put all my left over coin change into my change jar, CJ.

Check out some more tips from Dave Ramsay on using the envelope system.